Uploaded on BSE Limited Website: http://listing.bseindia.com Ho-425-S Dated: 06.07.2020 Manager – Department of Corporate Services, Bombay Stock Exchange Ltd., Registered Office: Floor 25, P J Towers, Dalal Street, Mumbai 400 001 Dear Sir/Madam, Furnishing of Information as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Scrip Code : 533033, Scrip Id: ISGEC Sub: Investor Presentation on financial performance of the quarter and year ended March 31, 2020 1. This is further to our letter bearing Ref no.Ho-425-S dated July 01, 2020, wherein we had given an advance intimation of the upcoming Investor Conference Call organised by the Company on July 07, 2020 at 16:00 hours (IST) to discuss the financial performance of the Company of the quarter and year ended March 31, 2020. 2. In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith a copy of Investor Presentation on the financial performance of the quarter and year ended March 31, 2020, which would be shared with the Investors. 3. This Investor Presentation is also available on the website of the Company www.isgec.com. 4. The above is for your information and records, please. Thanking you, Yours faithfully, For Isgec Heavy Engineering Limited Sd/- (S.K. Khorana) Executive Director & Company Secretary Contact Number: 9810188045 Encl: as above
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Uploaded on BSE Limited
Website: http://listing.bseindia.com
Ho-425-S Dated: 06.07.2020
Manager – Department of Corporate Services,
Bombay Stock Exchange Ltd.,
Registered Office: Floor 25,
P J Towers, Dalal Street,
Mumbai 400 001
Dear Sir/Madam,
Furnishing of Information as per
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Scrip Code : 533033, Scrip Id: ISGEC
Sub: Investor Presentation on financial performance of the
quarter and year ended March 31, 2020
1. This is further to our letter bearing Ref no.Ho-425-S dated July 01, 2020, wherein we had given an
advance intimation of the upcoming Investor Conference Call organised by the Company on July
07, 2020 at 16:00 hours (IST) to discuss the financial performance of the Company of the quarter
and year ended March 31, 2020.
2. In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, please find enclosed herewith a copy of Investor Presentation on the financial
performance of the quarter and year ended March 31, 2020, which would be shared with the
Investors.
3. This Investor Presentation is also available on the website of the Company www.isgec.com.
4. The above is for your information and records, please.
This presentation and the accompanying slides (the “Presentation”), which have been prepared by ISGEC Heavy EngineeringLimited (the “Company”), have been prepared solely for information purposes and do not constitute any offer,recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on inconnection with any contractor binding commitment whatsoever. No offering of securities of the Company will be made exceptby means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable,but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, thetruth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not beall inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contentsof, or any omission from, this Presentation is expressly excluded.
This presentation contains certain forward looking statements concerning the Company’s future business prospects andbusiness profitability, which are subject to a number of risks and uncertainties and the actual results could materially differfrom those in such forward looking statements. The risks and uncertainties relating to these statements include, but are notlimited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domesticand international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and costover runs on contracts, our ability to manage our international operations, government policies and actions regulations,interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make anyannouncement in case any of these forward looking statements become materially incorrect in future or update any forwardlooking statements made from time to time by or on behalf of the Company.
03 February 2020 3 3Investor Presentation
Agenda
1 Company Overview
Business Capabilities
Market Leadership
Financial Performance
Giving Back To Society
Key Investment Highlights
2
3
5
6
7
COVID 19 Impact4
03 February 2020 4 4Investor Presentation
Agenda
1 Company Overview
Business Capabilities
Market Leadership
Financial Performance
Giving Back To Society
Key Investment Highlights
2
3
5
6
7
COVID 19 Impact4
03 February 2020 5 5Investor Presentation
ISGEC at a glance
A Diversified Heavy Engineering Company engaged in Manufacturing and Project Businesses.Manufacturing of Presses, Castings and Process Equipment.Turnkey Projects for setting up Boilers, FGD’s, Sugar Plants, Distilleries, Power Plants and Bulk Material Handling facilities.
Revenue
₹ 58,522 mnEBITDA
₹ 3,568 mn
EPS
₹ 19.9
Order Book
₹ 69,160 mnNet Worth
₹ 19,353 mn
Figures as per FY20 consolidated financials
PAT
₹ 1,507 mn
03 February 2020 6 6Investor Presentation
ISGEC at a glance
Diversified Heavy Engineering Company
Mix of Manufacturing and Project Businesses
Mix of Domestic & Export Revenues
Wide Spectrum of User Segment
Strong Labour Force
4,273 Employees across locations in India, Canada,
USA and Philippines
900 qualified engineers
Trusted Partner
Technology tie-ups and JVs with leading global firms
Robust Balance Sheet
FY20 Net Worth of INR 19,353 Mn
Strong Credit Rating - ICRA Credit Rating of AA (Stable)
Highly Experienced Management
75+ years of providing engineering solutions to customers
globally.
Global reach
Presence across 91 countries across 6 continents
03 February 2020 7 7Investor Presentation
Our Journey
What started off in 1933 as a Sugar Manufacturing Company has been transformed into a Diversified HeavyEngineering Company with 90.5% of our Consolidated Revenues coming from Engineering Products and Projects
1933-1990 1991-2010 2011-2015 2016-2020
1933 Company (erstwhile named as Saraswati Sugar Syndicate Ltd) was Established
1946 Indian Sugar & General Engineering Corporation (Isgec Heavy Engineering Limited) established to address the need for Indian Capital Goods Industry.
1967 Presses Division formed.
1965 Isgec John Thompson Ltd. (IJT) is formed for designing, supplying, erecting and providing after sales service of boilers.
1963
1973
Company acquires a Castings Unit
The Saraswati Sugar amalgamated with Isgec.
2007 Design office starts at Chennai.
Company turnover crosses INR 1000 Cr.
2008 Company is listed in Group B of the Bombay Stock Exchange.
New plant at Dahej, Gujarat set up to manufacture heavier and bigger process plant equipment for the overseas market.
2009 New factory for Standard Presses is set up at Bawal, near Gurgaon (Haryana) India. Company Turnover crosses INR 2000 Cr.
2012 JV with Hitachi Zosen Corporation, Japan for manufacturing specialized and critical process equipment(51% share with Isgec). Company
turnover crosses INR 3000 Cr.
2015 JVs with Sumitomo SHI FW Energia, Oy , USA; TITAN Metal Fabricators, USA and Redecam, Italy
2018 Company acquired 100% stake in Eagle Press & Equipment Co. Ltd., a Press manufacturing company in Canada.
2020 Company turnover crosses INR 5800 Cr.
1981
Isgec John Thompson Ltd (IJT) amalgamated with Isgec
2010 Design office starts at Pune.
03 February 2020 8 8Investor Presentation
31% 31% 25% 23% 23%
69% 69% 75% 77% 77%
FY16 FY17 FY18 FY19 FY20
India
Global
Global Footprint - Presence across 91 countries
Sales from outside India contributed ~23% of Total Revenue in FY20
03 February 2020 9 9Investor Presentation
Shareholder Information
62.4%10.6%
1.6%
25.4%
Promoter
Mutual Funds
FIIs
Others
Shareholder Information as on 31st March 2020
BSE Ticker 533033
Market Cap (INR Mn) 18,776
% Free- float 38%
Free Float Market Cap (INR Mn) 7,135
Shares Outstanding (Mn) 73.5
3M ADTV (Shares) 16,304
3M ADTV (INR Mn) 5.6
Industry Industrial Machinery
Shares are unencumbered
Shareholding structure – 31st March 2020
03 February 2020 10 10Investor Presentation
Our Team
Board of Directors
Mr. Ranjit Puri Non-Executive Chairman & Promoter
Mr. Aditya Puri Managing Director & Promoter
Mrs. Nina Puri Whole-time Director & Promoter
7 Non-Executive Independent Directors
Mr. Vinod K. Nagpal
Mr. Tahir Hasan
Mr. Vinod Kumar Sachdeva
Mr. Arun Kathpalia
Mr. Sidharth Prasad
Mr. Vishal Kirti Keshav Marwaha
Mrs. Shivani Hazari
Our Team
Mr. S.K. Khorana Executive Director & Company Secretary
Mr. Ravi Jaidka Executive Director
Mr. Kishore Chatnani Chief Financial Officer
Mr. Sanjay Gulati Business Head Process Equipment Division
Mr. Vivek Nigam Business Head Machine Building Division
Mr. PVN Sanjay Business HeadEPC Division (Power Plants, Material Handling, Factories Construction)
Mr. V K Luthra Business Head Boiler Division
Mr. Suman Jain Business Head FGD and Air Pollution Control Division
Mr. Sanjay Awasthi Business HeadSugar Machinery and Distilleries Division
Mr. Yogesh Marwaha Head International Marketing
Mr. Shalabh Singh Head Corporate Business Development
03 February 2020 11 11Investor Presentation
Agenda
1 Company Overview
Business Capabilities
Market Leadership
Financial Performance
Giving Back To Society
Key Investment Highlights
2
3
5
6
7
COVID 19 Impact4
03 February 2020 12 12Investor Presentation
State-of-the-art Infra & Manufacturing Capabilities
Yamunanagar, HaryanaPressure Vessels & Heat exchangers, Presses, Boilers, Containers, Castings, Sugar and other Industrial Machinery
Rattangarh, HaryanaBoiler Components
Bawal, HaryanaMechanical Presses and other Industrial Machinery
Engineering for Excellence - Our Business Segments
Manufacturing Engineering & Projects
Process Equipment
Iron & Steel Castings
Boiler Tubes & Panels
Presses
Contract Manufacturing
Liquefiable Gas Containers
Sugar Plants & Distilleries
Air Pollution Control Equipment
Industrial Boilers
Power Projects
Bulk Material Handling
Buildings & Factories
Industrial Waste Water Treatment
Civil Infrastructure
ISGEC is a significant global player across business areas in Manufacturing and EPC
03 February 2020 15 15Investor Presentation
Catering to Wide Spectrum of Industries
Power
Oil & Gas
Fertilizer
Automobiles Defence Sugar
ChemicalSteel
CementRailways Mines
Ports Space
Distillery Paper Water Treatment
03 February 2020 16 16Investor Presentation
Serving Global and Domestic Clients
03 February 2020 17 17Investor Presentation
Technology Infusion across the Years
1964 1985 1998 2006 2009 2012 2016 2016 2017
John Thompson, UKBoilers
Rovetta Presse, ItalyMechanical Presses
Envirotherm, GermanyESPs
AP&T Hot Stamping presses
Fuel Tech, USANOx solutions
SIEMENS Heat Transfer Technology, The NetherlandsHRSGs
Tei USA Waste Heat Boilers, HP Heat Exchangers
Babcock Power USAWet FGDs
Foster Wheeler, USA, (Now Sumitomo SHI
FW Energia, Oy)CFB Boilers
ABB Lummus Heat TransferHelixchangers
HITZCritical Process
Equipment
2010
Foster Wheeler North America Corporation (Now BHI FW
Corporation,USA)Pulverised coal fired Boilers
Riley Power USA Process Fired Heaters
2020
Sumitomo SHI FW Energia OY, Finland
Semi-Dry FGD
03 February 2020 18 18Investor Presentation
Achieving Operational Capabilities
Presses
5000+ PRESSES
26 COUNTRIES
70+ PRESS LINES
Liquefiable Gas Containers
3,00,000+ Containers in60+ Countries
Largest producer of containers in the world
Industrial Boilers
800+ High Capacity and High Pressure Boiler installations in 48 countries
Material Handling Solutions
16 km of cross country pipe conveyor
Upto 10 MMTPA Bulk Port facility
Power Projects
Leader in power plants of up to 100MW
Sugar Plants & Distilleries
175+ Projects
700+ cane crushing mills
49 countries
Experience of running own sugar mill
Manufacturing and Maintenance facilities for Indian Railways
Flue Gas Desulphurisation Projects
Air Pollution Control Equipments (ESP, SCR and Bag Filters)
03 February 2020 19 19Investor Presentation
Standing Strong with Global Quality Benchmarks
Conformitè Europëenne Quality Management System–Approved by Lloyds Register of Quality Assurance
Environment Management System-Approved by DNV GL Business Assurance
Occupational Health & Safety Management System
'S' 'U' 'U-2' & 'U-3' Stamps
'N' and 'NPT' Stamps
National Board, USA, 'R’ Symbol, ‘NB’ Mark
Class I fabricator of Fusion Welded Pressure
Approved Foundry from Lloyd’s Register of Shipping
Approval for Liquefiable Gas Containers
China Safety and Quality License
03 February 2020 20 20Investor Presentation
Agenda
1 Company Overview
Business Capabilities
Market Leadership
Financial Performance
Giving Back To Society
Key Investment Highlights
2
3
5
6
7
COVID 19 Impact4
03 February 2020 21 21Investor Presentation
Positioned No.1 / No. 2 in most Business Lines
Market Leadership
Hydraulic & Mechanical Presses
Sugar Plants
CFB Boilers
Traveling Grate Boilers
Liquefiable Gas Containers
Process Equipment
Slop Fired Boilers
Oil & Gas Boilers
Bubbling Bed Boilers
Made to order large steel castings
Rankings
ET 500 279 (2019)
Fortune India 500 259 (2019)
Business Today 500 397 (2019)
03 February 2020 22 22Investor Presentation
Agenda
1 Company Overview
Business Capabilities
Market Leadership
Financial Performance
Giving Back To Society
Key Investment Highlights
2
3
5
6
7
COVID 19 Impact4
03 February 2020 23 23Investor Presentation
COVID-19 Implications
Business
• Q4 was panning out broadly in line with company expectations, but the disruption caused due to COVID 19 led to an estimated revenue shortfall of around Rs. 3,000 million and profit before tax would also have been correspondingly higher
• About 2% of our existing orders from customers have been put on hold/suspended or deferred the inspection/dispatch instructions for delivery of the ready equipment. Though these are not very large at this point in time
• We were having severe manpower problems at our sites and it affected our project execution and consequently our billing and margins
• The company faced some major issues with respect to procurement of raw material due to restriction of movement and limited capacity by the vendors
• Besides facing some logistics hinderances, there were major problems at ports including congestion and lack of custom officials. Due to this there was delay in transporting imported raw material to plants and construction sites
People• All safety precautions are being taken at sites and factories
• During the lockdown, to enable employees to work from home effectively, we purchased 400 new Laptops, new softwares and provided them with internet connections
• Webinars were conducted for imparting training and interaction with customers and employees
• Interactions with vendors, contractors etc. were done using IT tools during lockdown
03 February 2020 24 24Investor Presentation
• All factories which were closed during lockdown are now working at full capacity and there are no labour issues.
• On restarting after lockdown, manpower at EPC project sites was only around 30% of normal, and now it has reached about 60%. (It will take at least 2-3 months for situation to become normal).
• At our EPC offices, presently we are asking about 50% people to work from offices and balance to work from home. Offices in Noida, Chennai and Pune have restarted, with requisite precautions including social distancing.
• Issues related to supplies have been resolved to a great extent, as our large vendors are now working at 100% capacity and other small vendors are working at about 50% capacity due to migrant labour issue.
• The situation has improved at most of the ports.
• Large orders are expected from PSUs in areas such as Railways, Air Pollution Control Equipment, Refinery, Fertilizer, Hospitals, Airports and Civil Infrastructure and few others, which will compensate for any possible slowdown from private sector.
• The company is exploring larger Civil work projects and will be bidding for construction of small Airports.
• More remote Inspections at factories and sites – both by customers as well as by us for suppliers.
• Extensive use of IT tools for better connectivity.
Actions to Minimize Impact
03 February 2020 25 25Investor Presentation
Agenda
1 Company Overview
Business Capabilities
Market Leadership
Financial Performance
Giving Back To Society
Key Investment Highlights
2
3
5
6
7
COVID 19 Impact4
03 February 2020 26 26Investor Presentation
Performance Highlights
Revenue EBITDA PAT
15,89216,857
15,415
Q4FY19 Q3FY20 Q4FY20
YoY 3%
QoQ 9%
918
1,219
707
Q4FY19 Q3FY20 Q4FY20
YoY 23%
QoQ 42%
387
638
134
Q4FY19 Q3FY20 Q4FY20
YoY 65%
QoQ 79%
50,50758,522
FY19 FY20
16%
3,350
3,567
FY19 FY20
6%
1,4401,507
FY19 FY20
5%
FY20 Shows healthy underlying performance
Revenue EBITDA PAT
Q4FY20 Impacted by COVID-19 pandemic In INR Mn
Figures as per FY20 consolidated financials
03 February 2020 27 27Investor Presentation
In INR Mn
Financial Performance Trend
Revenue EBITDA PAT
46,29640,559 38,259
50,50758,522
FY16 FY17 FY18 FY19 FY20
4,130 4,853
3,540 3,350 3,567
FY16 FY17 FY18 FY19 FY20
1,905
2,483
1,684 1,440 1,507
FY16 FY17 FY18 FY19 FY20
Figures as per FY20 consolidated financials
37%
29%
26%
43%
61%
64%
20%
10%
9%
FY18
FY19
FY20
Manufacturing EPC Sugar
Segment Revenue
Robust revenue growth led by strong execution and healthy orderbook, in a very competitive market
Strong EPC order book, supported by best-in-class capabilities, provide healthy growth visibility
03 February 2020 28 28Investor Presentation
Strong Balance Sheet
Total Debt/Equity Interest Coverage Ratio
8.3
6.9 6.4
7.8
5.0 5.2
4.1 4.0 4.9 4.9
FY16 FY17 FY18 FY19 FY20
Fixed assets Inventory
Turnover Ratio
* Total Debt includes all interest bearing liabilities.Interest coverage ratio= EBIT/InterestFixed asset turnover= Operating Revenue/Average fixed assets, Inventory turnover= Operating Revenue/Average Inventory
0.6
0.3
0.1 0.2
0.5
FY16 FY17 FY18 FY19 FY20
6.3
10.0
13.6
10.9
6.3
FY16 FY17 FY18 FY19 FY20
Figures as per FY20 consolidated financials
03 February 2020 29 29Investor Presentation
Agenda
1 Company Overview
Business Capabilities
Market Leadership
Financial Performance
Giving Back To Society
Key Investment Highlights
2
3
5
6
7
COVID 19 Impact4
03 February 2020 30
Giving Back To Society: A Few of the Activities Undertaken
Remedial Classes for 250 Less Privileged Children at Nai Disha Educational & Cultural Society, an NGO (Stationary / Bags / Shoes / Sweaters / Mid Day Meals / Water / Dental Kits / Health Camp / etc)
Solar Energy Systems for Rural / Semi Urban Govt. Schools
Rain Water Harvesting Systems for Rural / Semi Urban Govt. Schools
Recharging of Aquifers through Village Ponds
Fans, Green Boards, Furniture and Building Repairs for Schools
Apprenticeship for Training & Skill Development
Construction of Sports facilities in Government Schools
Contribution to Haryana Corona Relief Fund
03 February 2020 31 31Investor Presentation
Agenda
1 Company Overview
Business Capabilities
Market Leadership
Financial Performance
Giving Back To Society
Key Investment Highlights
2
3
5
6
7
COVID 19 Impact4
03 February 2020 32 32Investor Presentation
Key Investment Highlights
Comfortably placed to Survive Down cycles
Continued focus on niche technologies
Constant Forays into Futuristic Business Lines
Presence in Multiple Core Sectors-Spreading Market Risk
